Overview

• Elon Musk declared on X that Trump’s sweeping tariffs will drive the US into recession in the second half of 2025.
• Donald Trump responded on Truth Social by threatening to terminate government contracts and subsidies for Tesla and SpaceX.
• The OECD cautioned that protectionist policies are undermining trade, investment and growth prospects in the US economy.
• Tesla shares fell over 14% on the day Musk publicly condemned the administration’s tariff and spending measures.
• The Congressional Budget Office estimates that Trump’s tax-and-spending-cut bill could add $2.4 trillion to deficits over the next decade.